Verizon Wins Bidding War for Straight Path Communications, Sources Say
11 Maggio 2017 - 5:04AM
Dow Jones News
By Thomas Gryta and Drew FitzGerald
Verizon Communications Inc. will buy Straight Path
Communications Inc. for more than $3 billion, after beating rival
AT&T Inc. in an unusually intense bidding war for the
wireless-spectrum holder, according to people familiar with the
matter.
Straight Path holds licenses to use high-frequency radio waves
that some engineers think could form the backbone of
next-generation networks. A deal could be announced as soon as
Thursday, the people said.
AT&T last month said it planned to buy Straight Path for
$1.6 billion in stock, including liabilities. But the agreement set
off a bidding war with a telecom rival that the companies declined
to identify but people familiar with the matter said was Verizon.
On Monday, Verizon agreed to pay $3.1 billion in stock for the
company, an offer that AT&T has declined to match, the people
said.
Straight Path, which had just nine employees as of October, was
worth about $400 million two months ago. The Glen Allen, Va.,
company acquired most of its wireless spectrum more than 15 years
ago but was penalized this year by regulators for failing to build
a working network.
Shares of Straight Path closed Wednesday at $223.79 on the New
York Stock Exchange, well above the most recently disclosed
$184-a-share takeover offer. The shares were trading around $35 in
March.
Write to Thomas Gryta at thomas.gryta@wsj.com and Drew
FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
May 10, 2017 22:49 ET (02:49 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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